“OUR CUSTOMERS LOVE IT.OUR PEOPLE FELT A FOOTTALLER THE DAY WE MOVED IN.”

William Stovin, President, Markel International20 Fenchurch Street, EC3

Our year in their words

This year we asked people to tell us about the effect our buildings have on them. Here we share what they said.

This is without doubt the best cinema in Leeds

A magnificent new Space to showcase the brand

Amazing food, great drinks and first- class dancing

A great opportunity for the brand – we cannot wait to open

Design and architecture of the highest quality

We are Delighted with trade in Wahaca Cardiff

We are delighted that bluewater has chosen the legion as its charity of the year

A great atmosphere for practising my boarding

Land Securities continue to be a first class partner – an innovative, forward looking landlord

Land Securities are calling the future shape of the retail market

I can see
the seagulls
so close up!

The UK food scene is up there with the most exciting in the world and we are excited to be a part of it, with Land Securities

The obvious landlord and developer to consolidate our business with

Madison has traded its socks off here

Land Securities are equipping Londoners with the skills needed to obtain work

Great to see Victoria’s local talent being celebrated

The front of house staff are off-the-charts brilliant!

Land securities helped me to set up my own practice as an independent artist in London

Land Securities has taken the time to understand the fashion world

Love our new space – it fits with all of our strategic objectives

    Performance Highlights

    We are the largest listed commercial property company in the UK by market capitalisation. Our purpose is to provide the right space for our customers and our communities – helping businesses to succeed, the economy to grow and people to thrive. Our goal is to outperform our peer group, in terms of total shareholder return, through the property cycle. Our vision is to be the best property company in the UK in the eyes of our customers, our communities, our employees and our partners. Here we show our performance
    over the last 12 months.

    Revenue profit 1

    £m

    Revenue Profit

    Adjusted diluted earnings

    pence per share

    Adjusted Diluted Earnings

    Adjusted diluted NAV

    pence per share

    Adjusted Diluted NAV

    1 Revenue profit is our measure of the underlying pre-tax profit of the Group and includes proportionate share of joint ventures and subsidiaries.

    Total business return 1

    30.7 %

    2014: 15.5%

    Total property return

    23.0 %

    2014: 12.8%

    Total shareholder return 1

    26.3 %

    2014: 27.2%

    1 Total shareholder return and total business return provide shareholders with the clearest guide to the Group’s progress in financial terms.

    Combined Portfolio value

    Combined Portfolio Value
    Land Securities at a glance

    CEO’s Statement

    Robert Noel reports on our performance during the year and
    shares his outlook for the year ahead.

    With record leasing levels across our London development programme, combined with a reshaped retail portfolio and continued financial discipline, we have delivered very strong results.”

    Robert Noel, CEO
    Full Statement

    Business Model

    Our goal is to outperform our peer group in terms of total shareholder return through the property cycles. In everything we do we aim to shape the future for good.

    Sources of capital

    Finance Capital

    Finance capital

    This includes the different types of funds we use to invest in our business, from shareholder capital to borrowings.

    Human Capital

    Social capital

    This includes the relationships we have with customers, communities and partners and the capabilities of our employees.

    Activity

    Capital Reinvestment; Sell, Buy, Manage, Develop

    Aims

    Financial aims

    Growth In Income

    Growth in income

    The total rent paid to us by our occupiers.

    Growth In Asset

    Growth in asset value

    The increase in the value of our portfolio generated by our actions and market influences.

    Non-financial aims

    Customers

    Customers

    Provide the right space at the right time, and in the right place at the right price.

    Environment

    Environment

    Improve the built environment while minimising environmental impact

    Community

    Communities

    Help local areas thrive economically, socially and environmentally.

    Employees

    Employees

    Attract, recruit and develop smart, skilled and commercially astute people.

    Outcome

    Dividend

    Dividend

    The quarterly payments we make to our shareholders.

    Capital return

    Capital return

    The overall change in value of our portfolio.

    Reputation

    Reputation

    The external trust and understanding we need in order to do business.

    Sustainable Future

    Sustainable future

    The prospects we have as a company that is valued by its stakeholders.

    Measure

    Total Business Return

    Total business return

    Dividend

    The quarterly payments we make to our shareholders.

    Plus

    Change in net asset value

    The overall change in value of our net assets.

    Influences

    Market Sentiment

    Market sentiment

    External responses to:

    • Economic conditions
    • Property market conditions
    • Our reputation
    • Our management team
    • Our portfolio of assets
    • Our levels of gearing

    Goal

    Total Shareholder Return

    Total shareholder return

    Dividend payments

    The financial value of the payments we make to shareholders.

    Plus

    Share price growth

    The increase in the financial value of our shares.

      Our Business Model

      Strategy

      Our strategy is designed to ensure we are a sustainable business through the market cycle.

      Placeholder
      Our Strategy and Performance

      Our Portfolio

      The Company has a simple organisational shape, with the London and Retail portfolios united within a group structure.

      Retail Bluewater

      Our strategy

      We create value by providing customers with new or more efficient space that helps drive their business. We operate across the UK but focus on assets in thriving locations that are a destination or convenient for shoppers.

      This year

      By taking decisive action, we have transformed our shopping centre portfolio. We now have a set of prime assets well matched to the ever-changing needs of our customers and communities.

      11.1%

      Valuation surplus

      £17.4m

      Investment lettings

      £2.9m

      Development lettings

      London Fenchurch

      Our strategy

      We create value by developing first class office, retail, leisure and residential space; strengthening income streams through smart, rigorous asset management; and enhancing our portfolio through well-timed sales and acquisitions. We operate in central London in areas we know well.

      This year

      We have delivered record levels of lettings in our well-timed, well-executed development programme, and made tactical acquisitions to strengthen the future pipeline. Our activity has been funded by disposals of more mature assets into a strong investment market.

      23.2%

      Valuation surplus

      £19.4m

      Investment lettings

      £39.7m

      Development lettings

      Asset lifecycle

      We aim to buy, develop, manage and sell assets in a way that benefits those closest to the Company – our customers, communities, partners and employees.

      People

      The capabilities and commitment of our employees help set us apart. Our people strategy is about creating the conditions where they can flourish and employees can make the greatest possible difference to the company‘s performance.

      Organisation

      We work to ensure that the organisation is well matched to the current market environment and the world we see ahead.

      Talent management

      We invest to ensure we can attract the best talent and that we are widely recognised as a great place to develop a career.

      Reward for performance

      We offer reward packages designed to motivate our people to make the biggest possible contribution to the performance of the company.

      We provide a framework that defines the culture of Land Securities while giving people the opportunity to bring it to life in different ways.

      Development pipeline

      Beyond 2017

      Portland House London SW1

      Nova – Phase II London SW1

      21 Moorfields London EC2

      Worcester Woods

      Selly Oak Birmingham

      Proposed development Buchanan Galleries Glasgow

      Our Development Pipeline

      Financial review

      Martin Greenslade reports on our financial performance and explains the movements in our key financial measures.

      We have seen yields fall and values rise across every category of our Combined Portfolio as a result of strong investor demand for commercial property.”

      Martin Greenslade, CFO
      Financial Review Financial Statements